For the 24 hours to 23:00 GMT, the GBP declined 3.67% against the USD and closed at 1.2550.
On the data front, UK’s Nationwide housing prices dropped 1.7% on a monthly basis in May, recording its biggest fall since 2009 and more than market forecast for a drop of 1.0%. In the previous month, house prices had recorded a revised rise of 0.9%. Additionally, consumer credit dropped by £7.4 billion in April, more than market expectations for a drop to a level of £4.5 billion and compared to a revised fall of £3.8 billion in the prior month. Moreover, mortgage approvals plunged to 15.8K in April, more than market expectations for a drop to a level of 23.8K and compared to a revised reading of 56.1K in the previous month. Furthermore, the BRC shop price index fell 2.4% on a yearly basis in April, compared to a drop of 1.7% in the previous month.
In the Asian session, at GMT0300, the pair is trading at 1.2576, with the GBP trading 0.21% higher against the USD from yesterday’s close.
The pair is expected to find support at 1.25, and a fall through could take it to the next support level of 1.2423. The pair is expected to find its first resistance at 1.2632, and a rise through could take it to the next resistance level of 1.2687.
Moving ahead, traders would keep a watch on UK’s Markit services PMI for May, slated to release in few hours.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
